Precursor to nati o
MINISTER OF FINANCE Pravin Gordhan may have got rid of one headache with legislation to curb the influence of the SA Reserve Bank’s private shareholders but he may have created different problems in the process. The SA Reserve Bank Amendment Bill not only aims to limit the number of shares the Bank’s private shareholders can hold, it also introduces the first major restructuring of the Bank’s board of directors since it was formed in 1921.
The Bill provides for an expanded board from 14 to 15. It allows public nomination of directors, including two with mining and labour backgrounds. They replace two of four with commercial and financial experience.
A panel – which will “screen” public nominees – will be chaired by Bank Governor Gill Marcus, plus a retired judge, someone handpicked by Gordhan as well as three members chosen by the National Economic Development and Labour Council.
Nomura International economist Peter Attard Montalto reacted by saying that although the revamp was acceptable, problems may occur with future appointments. He warned having a separate mandate for the board and for the Bank’s Monetary Policy Committee opened the possibility of the Bank following the Polish example,